Abstract
D.Com. (Econometrics)
The main aim with the thesis was to outline the use of regional econometric modelling as a
technique for the modelling of the interdependency in the development regions of South
Africa. In particular, an regional econometric model of Region H was constructed.
There is no doubt that modelling is here to stay - as part of the analytical process used in
scholarly studies and in applications, especially for making policy in both the public and
privatedomain. Although macro-econometric modelling has been withus for sometime, the
art of building large-scale· regional economic models is relatively new, especially in South
Africa where such models have never been in use. The problem of forecasting regional
economic activity has become an important component of regional research. The most
frequently used forecasting techniques have been input-output model.
A regional econometric model can be defined as a set of equations, sometimes highly
simultaneous, describing the economic structure of a regional economy. The parameters of the equations are estimated economically largely by regression equations.